PRESS RELEASE
Published on April 20, 2004
Exhibit 99.1
LTC Announces Operating Results for the Three Months Ended March 31, 2004
and Declares Second Quarter Cash Dividend on Its Common Stock
MALIBU, Calif.--(BUSINESS WIRE)--April 20, 2004--LTC Properties,
Inc. (NYSE:LTC) released results of operations for the three months
ended March 31, 2004 and announced that net income available to common
stockholders was $0.9 million or $0.05 per diluted share. Included in
these results was a gain on sale of assets of $1.0 million, or $0.05
per share, and an additional charge of $4.0 million, or $0.22 per
share, related to the Company's redemption of all of its remaining
9.5% Series A Preferred Stock and all of its 9.0% Series B Preferred
Stock. For the same period in 2003, net income available to common
stockholders was $0.1 million or $0.01 per diluted share which
included an impairment charge of $1.3 million. The Company reported no
impairment charge in the first quarter of 2004. Revenues for the three
months ended March 31, 2004, were $17.0 million versus $15.9 million
for the same period last year.
The Company stated that during the quarter ended March 31, 2004,
it had made investments totaling approximately $7.3 million. In
addition, on April 8, 2004, the Company funded a $1.9 million loan
bringing overall new investments since the beginning of the year to
$9.2 million at an average yield of 10.9%. Funds for these investments
came from the Company's Unsecured Line of Credit with a weighted
average interest rate at March 31, 2004 of approximately 4.0%. These
investments generated rental and interest income of $30,000 in the
first quarter and are expected to generate rental and interest income
of approximately $250,000 per quarter for the remainder of fiscal
2004.
Additionally, in February 2004, LTC issued $100.0 million of its
8.0% Series F Cumulative Preferred Stock and used the proceeds for the
redemption of its outstanding 9.5% Series A Cumulative Preferred Stock
and its 9.0% Series B Cumulative Preferred Stock. The total Preferred
Stock dividends (not including the $4.0 million redemption expense) in
the first quarter of fiscal 2004 was $4.9 million. LTC stated that
quarterly dividends for its currently outstanding Preferred Stock
issues will be approximately $4.0 million per quarter going forward
assuming no conversions of convertible preferred stock. The reduction
is primarily the result of additional dividends paid during the first
quarter of 2004 of approximately $0.8 million, or $0.04 per share, due
to the overlap of issuing the Series F Preferred Stock during February
2004 and the 30 day notice period for the redemption of the Series A
and Series B Preferred Stock, which redemptions were completed by the
end of March 2004.
LTC also announced that it has declared a dividend for the second
quarter of fiscal 2004 of $0.275 per common share payable on June 30,
2004 to stockholders of record on June 18, 2004. This represents an
increase from the $0.25 paid in the first quarter 2004.
The Company has scheduled a conference call for Thursday April 22,
2004 at 8:00 AM Pacific time in order to comment on the Company's
performance, acquisitions and operating results for the quarter ended
March 31, 2004. The conference call is accessible by dialing
800-901-5226 passcode 61118617. The earnings release and any
additional financial information that may be discussed on the
conference call will also be available on our website. An audio replay
of the conference call will be available from 10:00 AM Pacific time on
April 23, 2004 through April 29, 2004. Callers can access the replay
by dialing 888-286-8010 and entering conference ID number 87805334.
Webcast replays will also be available on our website until May 7,
2004.
At March 31, 2004, LTC had investments in 84 skilled nursing
facilities, 96 assisted living residences and one school in 30 states.
The Company is a self-administered real estate investment trust that
primarily invests in long-term care and other health care related
facilities through mortgage loans, facility lease transactions and
other investments. For more information on LTC Properties, Inc., visit
the Company's website at www.ltcproperties.com.
This press release includes statements that are not purely
historical and are "forward looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, including
statements regarding the Company's expectations, beliefs, intentions
or strategies regarding the future. All statements other than
historical facts contained in this press release are forward looking
statements. These forward looking statements involve a number of risks
and uncertainties. All forward looking statements included in this
press release are based on information available to the Company on the
date hereof, and the Company assumes no obligation to update such
forward looking statements. Although the Company's management believes
that the assumptions and expectations reflected in such forward
looking statements are reasonable, no assurance can be given that such
expectations will prove to have been correct. The actual results
achieved by the Company may differ materially from any forward looking
statements due to the risks and uncertainties of such statements.
LTC PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
(Unaudited)
Three Months
Ended March 31,
---------------
2004 2003
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Revenues:
Rental income $11,566 $9,786
Interest income from mortgage loans and notes
receivable 2,138 2,507
Interest income from REMIC Certificates 2,391 2,786
Interest and other income 865 781
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Total revenues 16,960 15,860
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Expenses:
Interest expense 3,313 5,115
Depreciation and amortization 3,175 3,063
Impairment charge -- 1,260
Legal expenses 18 364
Operating and other expenses 1,257 1,824
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Total expenses 7,763 11,626
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Income before minority interest 9,197 4,234
Minority interest (283) (321)
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Income from continuing operations 8,914 3,913
Discontinued operations:
Income (loss) from discontinued operations 12 (29)
Gain on sale of assets, net 975 --
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Net income (loss) from discontinued operations 987 (29)
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Net income 9,901 3,884
Preferred stock redemption charge (4,029) --
Preferred stock dividends (4,946) (3,761)
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Net income available to common stockholders $926 $123
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Net Income per Common Share from Continuing Operations
net of Preferred Stock Dividends:
Basic $0.00 $0.01
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Diluted $0.00 $0.01
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Net Income per Common Share from Discontinued
Operations:
Basic $0.05 $0.00
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Diluted $0.05 $0.00
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Net Income per Common Share Available to Common
Stockholders:
Basic $0.05 $0.01
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Diluted $0.05 $0.01
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Basic weighted average shares outstanding 17,986 17,965
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NOTE: Quarterly and year-to-date computations of per share amounts
are made independently. Therefore, the sum of per share amounts for
the quarters may not agree with the per share amounts for the year.
Computations of per share amounts from continuing operations,
discontinued operations and net income are made independently.
Therefore, the sum of per share amounts from continuing operations and
discontinued operations may not agree with the per share amounts from
net income available to common stockholders.
Reconciliation of Funds From Operations ("FFO")
FFO is a supplemental measure of a REIT's financial performance
that is not defined by accounting principles generally accepted in the
United States. We define FFO as net income available to common
stockholders adjusted to exclude the gains or losses on the sale of
assets and adjusted to add back impairment charges, real estate
depreciation and other non-cash charges. Other REITs may not use this
definition of FFO and therefore, caution should be exercised when
comparing our company's FFO to that of other REITs. FFO is used in the
REIT industry as a supplemental measure of financial performance, but
is not a substitute for net income per share available to common
stockholders determined in accordance with accounting principles
generally accepted in the United States.
The following table reconciles net income available to common
stockholders to funds from operations available to common stockholders
(unaudited, in thousands, except per share amounts):
Three Months
Ended March 31,
---------------
2004 2003
------- -------
Net income available to common stockholders $926 $123
Add: Real estate depreciation 3,179 3,232
Add: Impairment charge -- 1,260
Less: Gain on sale of assets, net (975) --
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FFO available to common stockholders $3,130 $4,615
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Add: Preferred stock redemption charge 4,029 --
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FFO excluding preferred stock redemption charge $7,159 $4,615
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Basic FFO available to common stockholders per share $0.17 $0.26
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Diluted FFO available to common stockholders per share $0.17 $0.26
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Basic FFO excluding preferred stock redemption charge
per share $0.40 $0.26
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Diluted FFO excluding preferred stock redemption charge
per share $0.37 $0.26
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In October 2003, NAREIT informed its member companies that the
Securities and Exchange Commission (SEC) has taken the position that
asset impairment charges should not be excluded in calculating FFO.
The SEC's interpretation is that recurring impairments on real
property are not an appropriate adjustment. If the Company adopted the
SEC's interpretation of FFO and did not adjust for the asset
impairment charges, the Company's basic FFO, diluted FFO and FFO per
diluted share for historical periods would be different than the
amounts reported in this release and in previous disclosures.
According to NAREIT, there is inconsistency among NAREIT member
companies as to the adoption of the SEC's interpretation of FFO.
Therefore, a comparison of the Company's FFO results to another
company's FFO results may not be meaningful.
The following table presents the Company's FFO results reflecting
the impact of asset impairment charges as interpreted by the SEC
(unaudited, in thousands, except per share amounts):
Three Months
Ended March 31,
---------------
2004 2003
------- -------
FFO available to common stockholders $3,130 $4,615
Less: Impairment charges -- (1,260)
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FFO available to common stockholders including
impairment charges $3,130 $3,355
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Basic FFO available to common stockholders including
impairment charges per share $0.17 $0.19
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Diluted FFO available to common stockholders including
impairment charges per share $0.17 $0.19
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LTC PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)
March 31, Dec. 31,
2004 2003
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ASSETS (unaudited)
Real Estate Investments:
Buildings and improvements, net of accumulated
depreciation and amortization:
2004 - $76,390; 2003 - $73,299 $357,195 $356,830
Land 25,608 25,308
Properties held for sale, net of accumulated
depreciation and amortization:
2004 - $0; 2003 - $77 -- 487
Mortgage loans receivable, net of allowance for
doubtful accounts: 2004 and 2003 - $1,280 74,752 71,465
REMIC Certificates 63,084 61,662
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Real estate investments, net 520,639 515,752
Other Assets:
Cash and cash equivalents 3,748 17,919
Debt issue costs, net 1,492 1,496
Interest receivable 3,159 3,809
Prepaid expenses and other assets 4,855 4,495
Notes receivable (includes $9,292 due from CLC
Healthcare, Inc. in 2004 and 2003) 19,543 19,172
Marketable debt securities -- 12,281
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Total Assets $553,436 $574,924
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LIABILITIES AND STOCKHOLDERS' EQUITY
Bank borrowings $12,000 $--
Mortgage loans payable 116,998 123,314
Bonds payable and capital lease obligations 14,254 14,686
Senior mortgage participation payable 18,046 18,250
Accrued interest 881 952
Accrued expenses and other liabilities 2,313 2,514
Liability for Series A 9.5% Preferred Stock
redemption - 1,226 shares -- 30,642
Distributions payable 1,991 2,383
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Total Liabilities 166,483 192,741
Minority interest 10,831 13,401
Stockholders' equity:
Preferred stock $0.01 par value: 15,000 shares
authorized; shares issued and outstanding:
2004 - 8,200; 2003 - 8,026 193,500 189,163
Common stock: $0.01 par value; 35,000 shares
authorized; shares issued and outstanding:
2004 - 18,018; 2003 - 17,807 180 178
Capital in excess of par value 255,515 250,055
Cumulative net income 284,849 274,948
Other 480 (638)
Cumulative distributions (358,402) (344,924)
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Total Stockholders' Equity 376,122 368,782
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Total Liabilities and Stockholders' Equity $553,436 $574,924
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CONTACT: LTC Properties, Inc.
Andre C. Dimitriadis/Wendy L. Simpson, 805-981-8655